Investors shorting shares of GameStop (GME.N) and AMC (AMC.N) Entertainment meme are estimated to have lost $ 754 million on Tuesday alone as stocks rallied, company data shows. Ortex financial analysis.
Shares of GameStop, which were at the heart of the so-called “stonks” retail mania earlier this year, rose 8% to nearly $ 225 in pre-market trading in the United States on Wednesday. after an increase of 18%. The shares of cinema operator AMC climbed 39%.
“The sharp rise in prices can cause holders of short positions to try to close their positions by buying back the shares, which leads to additional demand which in turn can push up the share price,” said Peter Hillerberg, co-founder of Ortex.
“This is what the ‘Reddit army’ is hoping for. “
Short-term interest in AMC is currently estimated at 21% of freefloat and in GME it is estimated at 17% of freefloat, according to data from Refinitiv.
Ortex data shows short sellers lost $ 618 million in Tuesday’s session, rising to $ 754 million if secondary market trading was factored in.
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